Marico Industries Ltd is relaunching Parachute Flexi pack, the small unit size pack of the coconut oil brand, as Parachute Super pack in a new thermoform fill seal (TFS) technology.
The Flexi pack used to earlier come in form fill seal (FFS) pouches which were being blatantly replicated by garage operations, eating into the brand’s sales. This prompted the company to relaunch the small unit price pack of Parachute in a rigid pack involving the TFS technology.
A market research conducted recently by Marico in Andhra Pradesh revealed that out of a 100 consumers who used Parachute Flexi, only 27 per cent could recognise the original pack.
The company thus decided to deploy high technology, which will give them the benefit of a low price per unit on a large scale production. With this the company expects to lower the incidence of lookalike products in view of the fact that the pack design is difficult to replicate as it involves an expensive technology. Parachute Super is priced at Rs 4 for 50 ml and Rs 7.50 for 100 ml.
In order to convert this opportunity into a marketing strategy aimed at the consumers, the company underscores the fact that the new packaging is leak proof. Further, at the retail end, the new pack attempts to break the clutter in an otherwise crowded retail environment where most of the packs (or sachets) — be it shampoos, or other eatables — dangle while Parachute Super pack will instead be ‘hooked’.
Parachute is the market leader in the coconut oils market with a share of over 50 per cent. Of the one lakh tonne per month coconut oils market, two-thirds is loose market and the balance is branded. Of the 5,000 tonne per month branded market, 1,500 tonne is the market for flexi packs (or sachets). The total size of the branded coconut oils market is Rs 700-800 crore. The bottle to pouch ratio in coconut oils stands at 1:2.